“All about Growth”: Willis Group Holdings Merges with Hilb Rogal & Hobbs |
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Written by U. S. Insurance News
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Monday, 16 June 2008 |
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Willis Group Holdings Limited, a global insurance broker, has announced
that it will acquire all of the outstanding stock of Hilb Rogal &
Hobbs Company, an insurance and risk management intermediary. The
merger will double Willis’s North America revenues and strengthen its
position in certain growth markets.
Combining these complementary businesses will improve Willis’s position in key markets, including California, Florida, Texas, Illinois, New York, Boston, New Jersey and Philadelphia, and in key business lines. It will more than double Willis’s North America revenues in employee benefits—a strong area of expertise that the company has targeted for further growth—and strengthen key practice areas, such as personal lines, real estate, health care, environmental, construction, complex property, and executive risk.
The transaction will enhance Willis’s leadership as a middle market broker and reinforce its large account presence. It also will expand the range of the company’s specialty expertise and complement its substantial presence in the London market.
“This dynamic transaction is all about growth,” said Joe Plumeri, chairman and CEO of Willis. “It’s truly transformational for our North America business. Only HRH has the scale and fit in attractive growth areas to take our business to the next level.”
Plumeri said Willis brings global reach and expertise to the merger, and HRH brings added talent and local market presence.
“HRH has some of the best brokers in the world, and I’m proud to have the opportunity to partner with people of this caliber,” he said. “We share the same passion for excellence, and there’s no limit to what we can accomplish together. It’s really the best of both worlds for our clients.”
The transaction, which is expected to close in the fourth quarter of this year, has an equity value of approximately $1.7 billion and an enterprise value of approximately $2.1 billion.
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